Thomas Bailey

The inevitable in Mergers & Acquisitions - Specific Industries become a market focus for Institutional Investors. Two such Industries that Janas Associates has identified in 2024 are Food Processing and Home Services. Home Services include Plumbing, HVAC, and Electrical companies. A Janas Food Services client in the southeast has attracted 12+ offers with EBITDA multiples as high as 8.0 times EBITDA, exclusive of land and buildings. Revenues approach $140 million with EBITDA of $10+ million. A Janas Home Services client achieved $20+ million in sales with eight locations over six years through an inspired marketing program. Janas received 7 Letters of Intent with EBITDA multiples in the range of 7.3 times to 12 times. Due Diligence is in process. Janas was founded in 1995 to serve Middle Market Companies at the same level as their larger brothers and sisters. Multiple locations in the US and abroad provide our professionals with an in-depth understanding of domestic and international business practices. We tell a compelling story for each client in the Confidential Information Memorandum. Our professionals experienced a plethora of professional and business backgrounds prior to becoming Investment Bankers and Management Consultants. As a result, we understand businesses, what make them profitable and unique,

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Challanges aplenty when private assets meet public market. What are the issues and solutions to getting to NAV for daily pricing?

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As M&A professionals at Persient LLC - Mergers & Acquisitions, we’re often asked what it takes to successfully sell a business. Well, it’s tough. The process will test your emotions (and sanity). We always start with explaining to sellers the common mistakes they need to avoid – both before and during the sale process – to best position them for a successful sale (and maintain their sanity).   Before entering the sale process:   ❌ Unclear objectives ❌ Poor operational environment ❌ Inadequate tax planning ❌ Fixation on timing ❌ Waiting too long ❌ Treating M&A as a zero-sum game ❌ Not knowing the right advisor for you ❌ Forgoing annual check-ups ❌ Deciding to do a DIY sale process   During the sale process:   ❌ Improper go-to-market strategy ❌ Poorly crafted and positioned marketing materials ❌ Poor buyer screening ❌ Ignoring confidentiality risk ❌ Hiding problems ❌ Liking a buyer too much ❌ Not having leverage ❌ Lacking negotiation skills ❌ Succumbing to greed ❌ Undisciplined due diligence management ❌ Not keeping your emotions in check   Clearly, a lot can go wrong. To learn more about what this means, we have a guide which provides additional context on these common mistakes, or just drop us a note – M&A is our passion, we love talking about it. https://lnkd.in/eVmGuNiS

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In 2005, amidst the NHL player lockout, Boston private equity banker Stephen Pagliuca proposed an audacious idea: Bain & Co., his firm, would purchase the entire NHL for $4 billion. Although owners declined, this marked a pivotal moment when private equity (PE) recognized the potential of sports teams. Today, the NHL's average club value has surged to $1.31 billion, up 948% from Pagliuca's offer, now totaling $41.9 billion (as per Sportico). The NHL, like other major leagues, now allows PE firms to own up to 20% of a team, with restrictions to maintain league integrity. This growth attracts PE firms seeking high returns beyond stock markets. As the landscape evolves, the NHL's openness to institutional investors—whether from private equity, pension funds, or other entities—reflects a broader strategy to ensure financial stability and growth in an increasingly competitive sports market. Source: https://bit.ly/3LbimLm #PrivateEquity #NHL #SportsInvestments

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When selling a middle market business in a highly consolidated industry, most prospective acquirers are very large companies in the same industry that are either publicly traded or backed by private equity. These companies are typically called strategic buyers, because acquiring another company in the same industry will be more profitable for a strategic buyer than it will for a financial buyer. This is both an opportunity and a problem for the seller because of risks inherent in this situation. A big risk is that a prospective buyer could snipe key customers or key employees from the seller's company after they make an offer and get inside information in the due diligence process. To protect against this risk, the confidentiality agreement should have strong terms for non-competition and non-solicitation which apply to all employees and require enforcement for a minimum of two years. The obvious opportunity is that a strategic buyer can afford to pay more to acquire the business than a financial buyer can, because the acquired company will be more profitable for the strategic buyer due to obvious synergies and elimination of duplicate expenses. Managing a sale in these circumstances requires the leadership of an experienced M&A advisor to mitigate risks and create competition to drive the price up for the seller's benefit.

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PE firms continue to grapple with holding portfolio companies longer and create value while exploring alternative exit strategies to monetization. Meanwhile, deal making and IPOs stubbornly remain well below normal levels. #privateequity #alternativeinvestments #investmentbanking

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